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Why Should You Invest in a Guaranteed Returns Life Insurance Plan?

  6/4/23 12:19 PM

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  6/4/23 12:19 PM   |

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Insurance plans have evolved manifold and now offer various types of options that let you save and invest, all the while securing your family members and their future. Guaranteed returns investment plans are another option that has enabled several investors to reach their future goals. A guaranteed return plan can offer security, growth, and low risk. These plans guarantee an income in retirement and offer different options, such as regular premium payment policies or a single premium guaranteed return plan, etc.

If you have not yet invested in these plans, here are some reasons why you should invest in a guaranteed plan at the earliest.

Reasons to invest in a guaranteed return plan

1. They offer guaranteed savings

A guaranteed return plan can offer you a guaranteed savings, making it a safe investment option. Since the returns from these plans are not dependent on the market, they can be ideal for investors who like to maintain a low-risk appetite. The returns at the end of the policy term remain high minus any kind of uncertainty or volatility.

Not only this, but some insurance providers also offer guaranteed additions after a few years from the policy purchase date as long as you stay invested and pay all your premiums. These help build a larger maturity corpus.

2. They provide you with a life cover

While you may find several savings options in the market, a guaranteed returns investment plan is still bound to stand out thanks to its insurance component. Not only do these plans promise guaranteed savings, but they also safeguard your loved ones. If the policyholder does not survive the term, the nominee of the policy receives the sum assured. This helps you protect your dependents and offer them a comfortable life even in your absence.

3. They help in emergencies

Some Guaranteed returns plans in India offer a loan facility that allows you to take out your funds in an urgent situation. Once your policy reaches a surrender value, you can apply for a loan to the insurance company. This can be more cost-effective than applying for a loan at a bank, as a bank can charge you a higher rate of interest depending on your credit score. Whereas, in the case of guaranteed return pension plans, you are merely taking a loan from your own money.

4. They are flexible

Guaranteed return plans are flexible and can be adjusted to suit your exact needs. For instance, you can pick a policy term for as little as 10 years or go up to a maximum of 30 years. The number of premium payment years can be adjusted from 5 years to 12 years. Some insurance providers also offer a single-premium guaranteed return plan that secures you after paying only a single lump sum premium. These policies have been designed to fit into anybody’s financial plan regardless of how much they earn or how much they wish to save for their future.

5. They offer useful riders

You can add a rider like the critical illness rider that can protect you against the medical costs of many severe ailments. Health riders offer instant lump sum payouts on being diagnosed with a critical illness listed in the plan. These normally include ailments, such as heart attack, cancer, kidney failure, etc.  Some insurance companies also offer a permanent disability benefit. Under this, your future premiums are waived off and paid by the company if you are diagnosed with a permanent disability. These benefits ensure that you get the help you deserve at the right time.

6. They come with tax benefits

A guaranteed return plan can provide you with many tax benefits too. The premiums that pay towards the plan qualify for tax deduction under Section 80(C) of the Income Tax Act, 1961. The maturity benefit received is also tax-exempt under Section 10(10D) of the Act. These tax benefits help you save more in the long run. None of your money is wasted in taxes, and you and your loved ones get to enjoy the real value of your funds without incurring any tax.

Edelweiss Life GCAP Plan – A Guaranteed Return Plan to secure your dreams and family!

The Edelweiss Life GCAP plan is a guaranteed returns plan that can be used to create a stream of guaranteed income in the future. The plan starts at a premium of as little as ₹1500 per month, making it affordable for all. In addition to this, you can claim tax benefits under Section 80(C) and Section 10(10D) of the Income Tax Act, 1961. Moreover, the returns are guaranteed, and you exactly know how much you are going to get from your investment.  

Edelweiss Life adds guaranteed accrual additions from the 9th policy year onwards to contribute to your overall earnings. And you get the option to add riders like the Critical Illness Benefit and Permanent Disability Benefit at a nominal cost over and above the premium for increased protection. You can also take a loan from the plan once it attains a surrender value.

This plan can be used for multiple types of goals ranging from retirement to a child’s education or marriage. The policy term ranges between 10 and 30 years, so you can pick one as per your goal. Moreover, the minimum entry age for the plan is only 91 days, and the maximum entry age is 55 years, making it accessible to most people.

To sum it up

Investing in guaranteed returns plans in India can help you be financially independent in your old age, pay for your child’s expenses, build a house for yourself, and do a lot more. These plans are safe, low risk, and extremely convenient. They can also be used by most people thanks to low premiums and flexible policy features. So, make sure to add one to your portfolio today!

 

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing

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